Friday, July 2, 2010

July Menu

We took out Summer Solstice (strawberry mango) because it's very labor intensive to prepare strawberries and mangos.  We added Honeydew Express and Cactus Smoothie; a sweeter version of the kale smoothie -- Green Revolution; and a sweet low calorie drink, Menage a Trois. 

Butterfinger, Kale Smoothie, and Tropical Bugs Bunny will be staples. 

We also added beet-ginger detox shots, which have been selling very well.  Some snacks like edamame cups.  Salads coming on the 5th. 

Smoothies


$4.50 for 24oz. (tax included)



Red Hydrator
Watermelon, Pineapple, Lemon, Banana, Beet Juice
Calories: 199 Protein: 3g Carb: 40g Fiber: 6g

Tropical Bugs Bunny
Mango, Pineapple, Banana, Carrot Juice
Calories: 235 Protein:4g Carb:54g Fiber:8g
Honeydew Express
Honeydew, Pineapple, Lemon, Banana, Soy Milk
Calories:206 Protein:4g Carb:61g Fiber:6g
Summer Breakfast
Strawberry, Watermelon, Lemon, Banana, Soy Milk
Calories: 210 Protein: 6g Carb: 47g Fiber:8g

Kale Smoothie
Kale, Mango, Lemon, Banana, Ginger, Carrot Juice
Calories: 219 Protein:6g Carb:49g Fiber: 10g



Green Revolution
Kale, Pineapple, Cucumber, Banana, Carrot Juice
Calories: 127 Protein:3g Carb:54g Fiber: 6g


Cactus Smoothie
Cactus, Honeydew, Lemon, Banana, Soy Milk
Calories: 175 Protein:3g Carb:54g Fiber: 6g
Ménage à Trois
Watermelon, Mango, Pineapple, Beet Juice
Calories: 140 Protein: 2g Carb:32 Fiber:4g

Detox Energy Shot

$2.50 for 2oz.

$3.50 for double shot (tax included)

Ginger-Beet
(lowers blood pressure and boosts energy, the natural alternative to caffeine and processed sugars).

All detox energy shots are fresh made.

Juice
$3.50 for 16 oz. (tax included)

Carrot-Beet Juice

(Lemon and ginger optional)
Calories: 120 Protein: 3g Carb: 24g Fiber: 2g



Cups
$2.50 ($1.00 w/drink purchase)

Edamame
Calories:120 Protein:12g Carb:13g Fiber:2g







Ask for substitutions and customized drinks.



Menu changes seasonally



Protein Shakes

$5.50 for 24oz. (tax included)



The Energizer

Watermelon, Lemon, splash of Beet Juice

Calories: 200 Protein:26g Carb:25 Fiber:3g

The Butterfinger

Watermelon, Grape, Banana, Peanut Butter, Carrot Juice

Calories: 470 Protein: 34g Carb: 42g Fiber: 6g



Pina Colada

Mango, Pineapple, Banana, Carrot Juice

Calories: 335 Protein:27g Carb:56g Fiber:8g



Popeye’s Secret

Kale, Watermelon, Lemon, Banana, Carrot Juice

Calories: 319 Protein:29g Carb:51g Fiber: 10g



Barb’s Breakfast

Yam, Watermelon, Peanut Butter, Soy Milk

Calories: 420 Protein:34g Carb:35 Fiber: 6g







Creatine Available for $1.00



We use Syntrax Matrix 5.0

Ultrafiltered and undenatured milk-derived protein.

NO aspartame

Sunday, June 27, 2010

Lessons Learned

We've been open for a month now.  Here are a few lessons we've learned:

* Don't assume too much.  For instance, we may think that a sign that says -- New Extended Hours: 9am-12am -- makes it clear that we're open from 9am thru midnight, but some really think that it means that we're open for 3 hours per day.  We've learned the importance of communicating as clearly as possible to customers.  It's our responsibility to communicate who we are and our operating hours to our customers. 

* Image matters.  For a small business, image and concept is primary, product is secondary.  We're more confident than ever that we have the best product (in terms of nutrition and taste) on the market.  But just because people like the samples we provide them doesn't mean they'll buy our products.  Most purchase our products primarily because of who we are and the idea we represent. 

* Samples work.  Samples drive in business and gives us an opportunity to entice customers about our idea.  People don't just want a drink.  They want to live an idea. 

* Taste matters.  People purchase an idea but care more about taste.  Most know what's good for them but they're unwilling to change their palates and habits.  We're expected to cater to their taste and nutritional demands.  That's why we changed our recipes daily over the first 2 weeks.  Only now do we change our menu weekly (based on feedback). 

* The customer isn't always right.  We'll discuss more about this point in another post. 

* Marketing research is garbage.  For instance, focus group interviews or anthropological fieldwork don't reveal much because they're conducted in artificial environments.  Small business owners told us that marketing research is useless for small businesses and the only way to know what sells is to sell the product.  They're right.  Our marketing research has negatively impacted our business.  Just because people say they want something doesn't mean that they really want it and if they do, they may buy it for reasons we're not attuned to.

We're beginning to leave day-to-day operations to employees so we should have more time to update the blog.  Sorry about the sporadic blog posts.

Wednesday, June 16, 2010

Detox Energy Shots

$2.50 per shot

Ginger-Beet Juice, freshly juiced, 2 oz. 

Protein Shake Menu

We decided it best to create a separate protein shake menu instead of giving people the option to add denatured protein powder to our smoothies.  Protein powder acts as a thickener and doesn't work well with certain drinks.  It also makes the fruits and vegetables we painstakingly prepare each day taste artificial. 
So we developed nutritionally dense protein shakes that don't taste synthetic. 

Protein Shake Menu


$5.50 for 24oz.
Made with fresh fruits and vegetables
We use Matrix 5.0 Sustained Release Protein Blend
Four servings of fruits and vegetables in each

The Energizer
Watermelon, Lemon, Carrot-Beet Juice
Calories: 200 Protein:26g Carb:25 Fiber:3g

The Butterfinger (healthy version)
Watermelon, Grape, Banana, Peanut Butter, Carrot Juice
Calories: 450 Protein: 34g Carb: 42g Fiber: 6g
Pina Colada
Mango, Pineapple, Banana, Soy Milk
Calories: 235 Protein:34g Carb:56g Fiber:8g


Popeye’s Secret
Kale, Mango, Lemon, Banana, Carrot Juice
Calories: 219 Protein:29g Carb:51g Fiber: 10g



Barb’s Breakfast
Yam, Watermelon, Peanut Butter, Soy Milk
Calories: 380 Protein:34g Carb:35 Fiber: 6g



Creatine available for $1,00 extra

No Aspartame

Smoothie Menu

Smoothie Menu


$4.50 for 24oz.
Made with fresh fruits and vegetables
Four servings of fruits and vegetables in each
No artificial sugars added



Red Hydrator
Watermelon, Pineapple, Banana, splash of Beet Juice
Calories: 198 Protein: 3g Carb: 40g Fiber: 6g



Tropical Bugs Bunny
Mango, Pineapple, Banana, Carrot Juice
Calories: 235 Protein:4g Carb:54g Fiber:8g



Summer Solstice
Strawberry, Mango, Banana, Soy Milk
Calories:230 Protein:6g Carb:36g Fiber:7g



Summer Breakfast
Strawberry, Watermelon, Lemon, Banana, Soy Milk
Calories: 200 Protein: 4g Carb: 47g Fiber:8g

Kale Smoothie
Kale, Mango, Lemon, Banana, Ginger, Carrot Juice
Calories: 219 Protein:6g Carb:49g Fiber: 10g

Pikachu’s Revenge
Jalapeno, Yam, Watermelon, Soy Milk
Calories: 180 Protein:6g Carb:35 Fiber: 6g

New Brochure

We're about to print our first brochure. 
Here it is:




Drink Fresh, Think Natural, Feel Alive
Alive Juice Bar offers nutritionally dense and diverse drinks and salads for a variety of lifestyles and needs. We use seasonal fruits and vegetables that are purchased daily and prepared in-house; we don’t use frozen fruits. Our drinks only contain naturally occurring sugars found in fresh fruits and vegetables—we don’t add artificial sugar and flavoring—and most of our drinks contain at least 4 USDA servings of fruits and vegetables. Best of all, our drinks taste great!

Practical Nutrition
Our goal is to provide our customers affordable and convenient nutrition. We believe that proper nutrition doesn’t need to be expensive nor time-consuming. Our drinks help those who are on-the-go to get the nutrition they need to be healthy and to feel alive.

Our Philosophy
We believe that the best way to healthy living is exercise and a balanced and varied diet. While we recognize that there are benefits that can be derived from proper use of nutritional supplements, studies have shown that the combination of exercise and proper diet is the safest and most effective way to maximize personal health.

Customizable Drinks
Alive Juice Bar works to meet individual needs and lifestyles. We’ve customized drinks for diabetics, for those seeking to end their caffeine addiction, and even for students who want enough energy to prepare for an exam. Tell us what you want and we’ll do our best to understand and meet your taste

3 week Anniversary

We're surviving, with 3 employees and adding a 4th after July 4th.  We're beginning to distance ourselves from day-to-day operations.  The hours have been brutal but we're gradually understanding how to run such an operation smoothly. 

While we've made many mistakes (that'll be documented in future posts), we think we've done a good job at being nimble and flexible.  There have been changes to the menu, the marketing plan, decor, and even the store name (3 times).  The bar is beginning to feel finished. 

Wednesday, June 9, 2010

We're Slammed

That's why we haven't updated the blog. We'll try to add new posts this weekend. 

We've learned a lot. We have a backlog of posts.  Stay tuned. 

Tuesday, May 25, 2010

Final Inspection Passed

We open tonight if we can figure out how to use the cash register. 

Monday, May 24, 2010

Opening Menu

We just completed our first training session with our employees.  The input from our employees have been very helpful and we've adjusted the opening menu based on their suggestions.  

Each drink is 24oz.  Most drinks contain 8oz. of ice, 8 oz. of fruit(s), 4 oz. of liquid (soy, carrot juice, orange juice), and a banana.  That's 3-4 servings of fruit/vegetables in each smoothie.  (To employees: remember 8-8-4 and a banana). 

Strawberry-Mango: 1 cup strawberry and mango, 1 cup ice, 1 banana, half cup orange juice
Strawberry-Mango tart: 1 cup strawberry, mango, and lemon, 1 cup ice, 1 banana, half cup orange juice
Mango-Pineapple: 1 cup mango and pineapple, 1 cup ice, 1 banana, half cup carrot juice
Mango-Azuki: 1 cup azuki, half cup mango, 1 cup ice, 1 banana, half cup soy
Strawberry-blueberry tart: 1 cup strawberry, mango, and lemon, 1 cup ice, 1 banana, half cup orange juice
Strawberry-Kale: 1 cup strawberry and lemon, 1 kale leaf, 1 cup ice, 1 banana, half cup carrot juice

---------
Sin Menu

Bacon Milkshake: 5 scoops vanilla ice cream, touch of heavy cream, half cup soy, 1 bacon (or 2?). 
Mango Milkshake: 1 cup mango and lemon, 3 scoops of ice cream, half cup soy

----------------------------------

We think 8 menu items will be manageable to start.  We'll increase menu offerings to twelve. 

Sunday, May 23, 2010

Menu - Week 1

Strawberry-Mango Smoothie: half cup strawberry, half cup mango, half cup vanilla soy, one cup ice, one banana

Blueberry-Mango Smoothie: half cup blueberry, half cup mango, half cup vanilla soy or milk, one cup ice, one banana

Watermelon-Mango Smoothie: One cup watermelon, half cup mango, half cup carrot juice, one cup ice, one banana

Mango-Carrot Smoothie: One cup mango, half cup carrot juice, one cup ice, one banana

Strawberry-Kale Smoothie: One cup strawberry, two kale leaves, one cup ice, half cup carrot juice, one banana 

Jalapano-Yam (or Sweet Potato) Smoothie: One jalapeno, one cup yam, slice of lemon, one cup carrot juice or soy

Mango-Azuki Smoothie (protein shake): 1 cup azuki bean, 1/2 cup mango, 1 cup soy, 1 banana, 1 cup ice

A slice of lemon can be added to any of these to add tartness.


Sin Menu
Bacon Milkshake: Two slices of bacon, one cup vanilla ice-cream, 1/2 cup heavy cream, one cup soy or milk

Mango-Lemon Milkshake: Half cup mango, slice of lemon, 1/2 cup heavy cream, one cup soy or milk
------------------------------------------------------------------------
We'll update this post with nutrition data (ahem, Wan).  We'll explain the "sin menu" in another post.

Note: Banana is used not only for its potassium, but also as a way to make the smoothie creamier.
Note: Matrix Whey Protein and Creatine can be added for $1, each.
Note: We're trying to add Odwalla Orange Juice to the menu for those who prefer sweet smoothies.  

Saturday, May 22, 2010

Dress Code

The purpose of our dress code is to ensure that our employees express our brand -- affordable and convenient nutrition and healthy living -- while maximizing employee efficiency and safety. 

* Wear clothes that maximize efficiency.  For instance, if it's more difficult to climb a ladder to reach something while wearing dress shoes than while wearing sneakers, then wear sneakers.

* Wear clothes that maximize safety.  Don't wear flip-flops or sandals if you're concerned about getting your toes stepped on.  When it's busy, toes will likely be stepped on.  Do your best to minimize injuries. 

*Wear clothes that express simplicity.  Our goal is to get people to believe -- vis-a-vis our products --  that nutrition and healthy living can be had by living simply, and not by living extravagantly. 

* Look at how Asians dress.  Do the opposite of whatever they do.  Avoid the high maintenance look. 
-------------------------------------
Specific Recommendations:

* Wear form-fitting clothing.  Avoid baggy and tight/revealing clothing.
* Wear little or no make-up and jewelry.
*  Wear clothes that won't offend customers.  Don't wear anything that expresses a political view-point or attacks/promotes an organization. 
* Avoid clothes that display a brand.
* Don't look sloppy (avoid baggy clothing). 
* Keep hair tied back, kept out of face and eyes (this could be a health code requirement)
* Keep fingernails well groomed - short and clean.  Avoid using nail polish on fingernails.

We may add to this post in the future.

Plumbing Inspection Passed

We learned that we don't need a backflow system for an air-cooled ice-maker (required for a water cooled ice-maker).  The backflow system cost us $600 to purchase, install, and test.

The inspection took 5 minutes.

We're frustrated because we wish our plumber would know more about backflow systems and ice-makers to build an argument to the city against having a backflow system.  Most construction contractors don't think it's worth challenging a city's requirements.  They're afraid to piss-off city inspectors .  

Based on our experience with building a house, city requirements can be successfully challenged without damaging anyone's reputations.

This experience is a reminder that we need to ask contractors why something needs to be done in a certain way.

Final inspection on Tuesday.  If we pass that inspection, we'll open Tuesday afternoon.

Wednesday, May 19, 2010

Application Question - Round 2

Write a play featuring the following -- Bacon, Yam, Jalapeno, and Mango.  (Inspired by Cooper Union School of Architecture). 



  

Tuesday, May 18, 2010

Fun Interview and Essay Questions

From Google:
Q: "You are shrunk to the height of a nickel and your mass is proportionally reduced so as to maintain your original density. You are then thrown into an empty glass blender. The blades will start moving in 60 seconds. What do you do?"

Q: "Explain a database in three sentences to your eight-year-old nephew."



From Steve Jobs, CEO and founder of Apple
Q: "Have you ever tried LSD?" 

From the University of Chicago, college application essay question:
The Cartesian coordinate system is a popular method of representing real numbers and is the bane of eighth graders everywhere. Since its introduction by Descartes in 1637, this means of visually characterizing mathematical values has swept the globe, earning a significant role in branches of mathematics such as algebra, geometry, and calculus. Describe yourself as a point or series of points on this axial arrangement. If you are a function, what are you? In which quadrants do you lie? Are x and y enough for you, or do you warrant some love from the z-axis? Be sure to include your domain, range, derivative, and asymptotes, should any apply. Your possibilities are positively and negatively unbounded.

(Inspired by Joshua Nalven, a graduate of West Orange High School, West Orange, NJ (2006–2007))


An Interview at Microsoft (not experienced by Wandrew)
I walked into my first technical interview at Microsoft, and before I could say anything, the woman says, "You're in an 8x8 stone corridor." I blink and sit down.

Interviewer: "The prince of darkness appears before you."
Me: "You mean, like, the devil?"
Interviewer: "Any prince of darkness will do."
Me: "Ok."
Interviewer: "What do you do?"
Me: "Can I run?"
Interviewer: "Do you want to run?"
Me: "Hmm, I guess not Do I have a weapon?"
Interviewer: "What kind of weapon do you want?"
Me: "Um, something with range?"
Interviewer: "Like what?"
Me: "Uh, a crossbow?"
Interviewer: "What kind of ammo do you have?"
Me: "Ice arrows?"
Interviewer: "Why?"
Me: (floundering) "Because the prince of darkness is a creature made of fire???"
Interviewer: "Fine, so what do you do next?"
Me: "I shoot him?"
Interviewer: "No, what do you do?"
Me: (blank stare) 
Interviewer: "You WASTE him! YOU FUCKING WASTE the PRINCE OF DARKNESS!!"
Me: (Me completely freaked out and off my game thinking, Holy shit, what have I gotten myself into).

She then tells me that she asks that question for two reasons. 1) Because she wants to know if the candidate is a gamer and 2) because she wants her question to show up on some website. I hate to accommodate her, but this is definitely the weirdest interview question I've ever heard of.



From Wieden Kennedy, to apply for a job with no description:
Write something for us. The content is up to you, but here’s our guideline for format: 

a pdf document, 20 pages or less, formatted 11×17 landscape, no larger than
6MB. It will be viewed on screen and not printed, so design with this in mind.

From Cooper Union School of Architecture
Write a play featuring the following shapes as characters: Triangle, Square, and Circle

Interview Questions Explained (High Level)

Link to Questions:

We posted these questions on our storefront window in hopes of accomplishing the following:

1. Reduce number of job applicants.  Based on the experiences of business owners, a "conventional" craiglist help-wanted ad for an entry-level position will generate at least 500 applicants, possibly more than 1000 because students are looking for summer jobs.  We wanted no more than ten, as it takes three hours to properly interview and review each applicant.

We had considered posting these questions on craigslist but decided against doing so for the following reasons:

a. We wanted "locals" (within 5 miles of our store) working at our store because they attract more customers (friends) to our store than someone who lives, say, 20 miles away.  Ideally, we'd have an employee from each of the area high schools and community colleges.  Thus far, we have Shorecrest, Shorewood, and Mountlake Terrace high schools, and Shoreline and Edmonds community colleges.  We'd like to add someone from Edmonds-Woodway high school, and perhaps representatives from UW-Seattle, North Seattle Community College, Lynnwood High School, and Bastyr University.  We're aiming to provide sports drinks to school athletic teams and to provide students with a public space to hang-out at. 

b.   We projected that posting these questions on craigslist would net 60-80 responses, still too many for us to handle.  (A restaurant in Seattle that used a similar approach to screen applicants generated twice as many responses). 

c.  Posting on craigslist is sure to generate some interesting egghead responses.  But we're not looking for eggheads.  We don't want eggheads because we already have one in Andrew.  We're just looking for people who are prepared to deal with and understand an egghead.  Some of these questions show how Andrew analyzes the world.  He sees metaphors everywhere and every social situation to him is a microcosm of some greater ideological struggle. 

Show a smoothie to a chemist, and she may see a kaleidescope of molecular activity; an economist may understand it in terms of its marginal utility.  We don't want employees who think this way because most of our customers don't think this way. They just want an affordable, tasty, and nutritious product and friendly, efficient service.  We want employees who keep things simple, who can translate what some egghead says about the impact of lutein on metabolic...in clear, plain, language.  Don't intimidate the customer and be knowledgeable enough to not be easily intimidated by egghead customers. 

2. Filter applicants who lack intellectual curiosity.  We're not measuring intellectual depth or maturity.  We're seeking those sincerely interested in learning the whys and wherefores of life. 

3. Learn more about an applicant's thought process and how they work to understand terms and ideas they're unfamiliar with.  We don't care about "correct" answers, we just want a sense of how someone works.  We're filtering (non-egghead) applicants who aren't willing to struggle with a problem they're unfamiliar with.

4. Force applicants to avoid using cliches like "I'm an honest, punctual, hard-working worker" when describing themselves to an employer.  We prefer a more indirect approach to learning about someone's skills, personality, and character.

5. Reduce impact of our prejudices when reviewing applicants.  They say first impressions count but nearly all people aren't good at assessing those they've only meet once.  It takes a long time and many different situations to get to know someone well.  Someone who seems confident may turn out cowardly when the boat flips and Jaws approaches; the fidgety and nervous may prove his courage when it matters the most.  That said, we don't want to be distracted by charisma, charm, and good-looks.  We don't want to turn someone away just because they seem "awkward," or, as is with most high school and college students, don't know how to write (or copy) a good resume and cover letter.  These questions give applicants another avenue to express and sell themselves.  Their answers, written on paper, allow us to see them without being distracted by noise like body-language. 

-----------------------------------------------------------
Anyone who makes an attempt to answer these questinos and can make it through an interview with the two-headed monster receives an offer.  If we haven't scared them away by the end of the interview, then they're probably a good fit.

The filters haven't worked as well as expected.  You get a few who are like rocks.  No matter what you say to them, they take it.  We're starting to think that they block us out and focus on getting a job, any job, instead of figuring out ways to catch up so that they'll be qualified for a job at Fresh Fruit Smoothies once it begins.     

But overall, we're happy with our approach to hiring. 

We'll discuss our hiring philosophy in another post.

Monday, May 17, 2010

Random Pics

Our store sign on a chalkboard cabinet door.  It's small and subtle but still visible from 20 feet.  For reasons we don't understand, we're reluctant to use a louder, more colorful sign.  Hours are posted on the sign on the right. 



The scrap wood wall and bookshelves.  Basic nutritional information is located within the frames.  This info helps us, and our employees and customers learn about what we sell. 



Church pew and games -- Monopoly, Scrabble, Pictionary, Twister, and Chess (Chinese and Arabic).  We look forward to spending our Friday evenings at the shop playing board games and sharing Reuben sandwiches. 



We may end us using kale as a staple item.  It's affordable and seems to keep better and is more nutritionally dense than leafy greens like spinach. 


We completed plumbing work today.  Plumbing inspection tomorrow.

Sunday, May 16, 2010

Our Lack of Preparation

We think we've done a lot to prepare to open a food service business.  We've operated our home kitchen as we would a restaurant, in an effort to reduce costs in our home and future business.  We've watched food shows like Iron Chef and Gordon Ramsey's Kitchen Nightmares to learn more about food, customer taste sensibilities, proper operations, and our personal insecurities (Kitchen Nightmares is often a show about how personal insecurities must be overcome to build a successful restaurant business).  We built a house to learn more about construction and the impact of design.  We've hosted dinners to test ideas and to prepare us to handle large crowds.  We participated in informal cooking competitions to see if we can produce, and win, under pressure.  We invested in a restaurant in hopes to gain deeper insight into food service operations.  Price-points, margins, gross revenues, projections, we had it all down.  We've always looked for an opportunity to improve our ability to handle a food service business.  We've seen these opportunities everywhere -- in a baseball game, at the opera, while setting concrete.  All we've seen are metaphors of food and its production.  

And yet, we're not fully prepared to open a food service business.

We didn't research basic restaurant equipment and services, like cash registers, refrigerators, and payroll and credit card systems.  Not being prepared has resulted in some moderately costly mistakes and we hope we've chosen the right payroll and credit card systems.  It's important to know the cost of equipment and services.  That way, you don't purchase a used cash register with a missing key for $100 while its updated version costs $85 new at Costco.  Doh! 

We should've spent more time window shopping for restaurant equipment and services.  We spent too much time thinking about work-flow processes and vision, but not enough about what makes them possible.

Wednesday, May 12, 2010

Interview Questions Explained

Link to the questions

We'll provide a high-level explanation of these questions in another post.  For now, we'll explain the purpose of each question. 

* Use "discriminating" in a sentence. Use "picky" in a sentence.

This isn't just a vocab question, it's used to introduce applicants to a way of thinking about food and customer taste sensibilities.  Our employees will be expected to aim to have a discriminating palate and to know how to work with picky customers.  We also want our employees to have a nuanced vocabulary when discussing our products with customers. 

* "Economics isn't a zero-sum game, where there's a loser for every winner." Provide an example of this dictum. If you don't agree with it, explain why.

This is a business ethics question.  We use it to introduce our worldview, which is significantly influenced by the idea that economic life isn't a zero-sum game, where there's a loser for every winner.  This question begins a discussion about how we can develop products that benefits the consumer and the seller.  We don't screw over a customer for profit.  We create win-win situations.  We make a profit because we provide our customers value that exceeds the price of our products.  Also, we don't want to work with anyone who thinks that economic life is necessarily a zero-sum game.  We'll discuss this question more in (yet) another post. 

* Sell this dish...
Useless question that goes against some of our other questions.  We're not looking for those who can sell anything to anyone.  We used this question because we wanted to assess creativity and sales ability.  We're not sure if it does. 
 
* Do you carry a trade deficit with a business? Are you concerned about it?

This has been an effective question.  We use it to introduce the idea of value.  Everyone who has purchased something has a trade deficit with someone.  Most of us carry a trade deficit with a grocer.  To make smoothies, we have to purchase produce from a grocer.  If the grocer doesn't spend the same amount on smoothies as we do on her produce, then we carry a trade deficit with her.  But that's okay, because her produce allows us to create value.  Without this trade deficit, we wouldn't have a smoothie shop. 
Not all trade deficits are good.  If we purchase *only* doritos, beer, and cigarettes for our consumption from our grocer, then we'd have a bad trade deficit because this exchange will make us unhealthy and thus unproductive. 

* A restaurant receives a party of 20. Each party member decides to pay with a credit card. How does this impact restaurant operations (ie customer service) and labor costs? (Answer this question in fewer than 5 sentences).

This question gets applicants to think about the cost of food service operations. 

* From your last grocery bill, estimate the amount of protein, calories, and carbs you purchased per dollar.

Employees will be asked to develop smoothies that meet specific nutritional and budget needs.  They're required to not just think of our products in terms of taste, but also how we can pack as much nutrition per dollar into each smoothie.  If the world's greatest smoothie costs $20 to make, we're not going to sell it.  We're trying to get our employees to think about cost-effective nutrition, and not about guilt-tripping customers into purchasing ideal nutrition that they may not be able to afford.

Summary: we're using these questions to let applicants know that we want them to figure out ways to develop and sell value.

Equipment

After a month and a half, we've finally purchased all our equipment.  The equipment list:

60" sandwich prep with 2 door refrigeration
Single door refrigerator
10 feet of prep tables
2 Blendtec blenders
Single door undercounter refrigerator
3 compartment dishwashing sink
2 compartment handsink
1 compartment prep sink
20 feet of shelves
2 cash registers (one with barcode scanner)
1 ice-maker, 400 lb/day, 200lb capacity
1 ice-container
1 freezer

Except for the blenders and the freezer, all equipment are used. 

We purchased most of the used items off craigslist.  We found some good deals but working with sellers on craigslist can be time-consuming.  Consider the following e-mail exchange we had with someone selling an ice-maker:

Andrew: Hi, I'm interested in the ice-maker.  How many pounds of ice does it produce per day and how much ice does it hold? 
Seller: I don't know how much it holds.  But it was enough for my store. 
Andrew: But I'm not running your store.  My store is a smoothie shop and thus, I need at least 300 lbs of ice per day.
Seller: I don't know how much it holds.  I just want it out of storage because I don't want to keep paying storage fees.  And I'm too old to have the stamina to start over again.
Andrew: I understand, but can you at least provide me the make and model information so I can research its capabilities?
Seller: Look, I paid $3500 for this ice-maker.  I'm selling it for $100.  You're getting a good deal. 
Andrew: But I'm not sure if I'm getting a good deal.  I'm not a restaurant equipment broker and my store is 40 miles from you.  I'm not interested in travelling a long distance to purchase something that I can't use and have to resell. 

Most sellers on craigslist understand that different stores have different needs.  But there were enough time-consuming exchanges and costly, useless trips that we've decided that it's most cost-efficient to use a reliable restaurant equipment broker who understands our needs and lives within 25 miles of our store.  We pay more but we save a lot of time and frustration.  And we reduce our risk, as restaurant brokers are more knowledgeable about and can better assess the quality of restaurant equipment than we can.  Best of all, they deliver for free and offer warranties. 

We made the mistake of using a restaurant broker who lives closer to Portland than Seattle.  One of our fridges isn't working properly and he still hasn't fixed it.  So we've been using a broker referred by a diner.  He's based 8 miles from us and has thus far provided good service. 

If we had the budget, we'd purchase a new ice-maker because it's a necessity.   If the ice-maker breaks down, we have to close the store.  We tried to lease (with option to buy) an ice-maker online, but the leasing agent wanted us to purchase a minimum of $10,000 worth of equipment.  So we decided to go with a used ice-maker and purchase a new one once we have the funds.  The current ice-maker would then be used as backup. 

We'll likely (and hopefully) have to purchase more equipment.  We purchased what we considered the minimum because we're not sure what will sell.  We don't want to purchase a big freezer and refrigerator and not use them. 


We're close to opening.  If we pass our plumbing and health inspections next week, we should be open by next weekend.

Monday, May 10, 2010

Payroll Systems and Online Timeclocks

We're (frantically) searching for a payroll system and an online timeclock. 

We want employees to check-in and out by logging into a computer.  The information would then be sent to a spreadsheet that calculates number of hours worked and pay.  The calculations sent to a third-party vendor who deposits checks into employee accounts. 

If you have advice, please leave it on the blog instead of e-mailing it to us.  We want to hear what others have to say about each advice.  

Sunday, May 9, 2010

Updated Pics of Front Area

Fruits painted in frames.  Nutritional information will soon be added. 

Thanks to Carey and his mother, Alberta, for donating a green couch in perfect condition (on right).  The color of the sofa is ideal for the shop. 




Menu board and wall slats up.  We're leaning toward replacing the orange with a light green. 

Another wall slat (thanks Reuben!) and a church pew we purchased from now defunct Chez Gaudy.




Beginnings of our bar seating area. 








We're exhausted so not much commentary on any of these pictures.  We'll add more to this employee training manual tomorrow.

Friday, May 7, 2010

The Smoothie Lab

All our smoothies are developed in-house.  Our goal is to pack as much nutrition per dollar into each smoothie.  Each smoothie will target specific needs. There'll be smoothies made for those who want a lot of protein and few calories.  Other smoothies will be heavy on complex carbs.  There'll be smoothies made for those who want to lose weight, and for those who want to gain weight. 

Since we're neither chemists nor physiologists, we don't have a high-level understanding of how to develop a smoothie that meets the taste requirements of our customers.  But we have a basic understanding of the scientific method.  We research and use trial-and-error to figure out how to build the nutritious smoothies that meet customer taste expectations. 

Today, we learned that mango kept in cool (40-55 degree) temperatures take a long time (more than 2 weeks) to ripen.  Mangos that aren't ripe are tart.  Since most customers want smoothies that taste sweet, we have to figure out a way to ripen our produce so that we can predict when they're ready to be prepared.  Customers will expect consistency in the taste of our products so we can't just use any fruit when making a smoothie.  We have to know when a fruit is ready to be used.  Our employees are expected to have an eye and nose for the ideal fruit.  They need to develop a *discriminating* palate. 

It's risky to use only fresh fruit and high-quality juices to make smoothies.  The only way we can make this work is if we develop an efficient work-flow process that reduces waste and have employees who have discriminating taste when it comes to fruit and vegetables.  Furthermore, we expect customers to purchase our products primarily because of the expertise of our employees.  If we don't understand fruit and vegetables better than the average customer, then they might as well make their own smoothies.  Our expertise is as much as a value add as the convenience we provide to customers. 

(To Alaska Airline employees - we apologize for the tart smoothies.  We'll send over sweet (not sugary) tasting smoothies that'll meet your taste and nutrition expectations. In exchange, you'll have to taste our Jalapeno-Yam smoothie).

The purpose of the smoothie lab isn't to develop the ideal smoothie, just as automobile manufacturers don't try to engineer the perfect car for average customers.  The ideal, the perfect isn't cost-effective.  Our purpose is to create smoothies that add enough value to our customers so that they'll purchase our products.  We try to improve lives, not to make people live the ideal life.  We don't make porn.  We provide practical nutrition. Someone else can make pornographic smoothies.

Thursday, May 6, 2010

Scrap Wood Wall

We've completed the scrap wood wall.  Building a scrap wood wall was a risky decision not so much because it's unusual for our area (more on that in another post), but because it's difficult for amateur interior designers and construction workers like us to make what's typically found in garbage look inviting. 

We based our design on scrap wood walls found in Seattle's Frank's Champagne and Oyster House and some of the ramen and izakaya shops in Vancouver BC.  The ones we've seen look dramatic, sophisticated, cozy, and inviting.  We realize that such a design may not be appropriate for a smoothie shop, as drama and sophistication may turn out ridiculous in a setting that sells smoothies in take-out plastic cups.  But we decided it was worth the risk. We want to redefine the smoothie experience (a blog post on this later) and create a shop that's a public meeting space.  In other words, we're trying to build a design that's a mix of Starbucks and Jamba Juice. 

After consultation with gym members and our architect, we decided it was best to paint over the wood with fruit colors.  Most thought that stained wood doesn't mix well with smoothies.  The bright colors remind people of fruit and smoothies, the wall texture makes for interesting design, and the use of scrap wood fits well with Seattle ethos of "recycle, re-use." 

Andrew nearly tore out the scrap wood wall.  Andrew built the wall, so it became a reflection of himself.  For him, looking at the wall was like looking at himself, and he soon only saw zits and other imperfects.  He saw ugly and insecurity.  He hated it and had a breakdown. 

Wan reassured him that the wall wasn't as bad as he thought.  She dragged gym users into the shop and asked them to share their opinion about the wall.  Andrew pestered his architects for their opinion.  Not everyone liked the wall, but all thought that it could work.  All it needed was some make-up to hide the imperfections and to properly express our ideas. 

Now that the wall is painted, Andrew is much happier with it.  Wan, not as much.  She did much of the painting so at one point, she felt that the wall was a reflection of herself and all she saw was ugliness and insecurity.  But that's another story. 

Anyway, some pics. 




We'll paint pictures of fruits and vegetables and their nutrition information about their content within the frames.  Updated pics this weekend. 

We probably should've been more deliberate in how we set the wood scrap pieces.  The good news is that it's very easy to change the texture of the wall.  We may do so in the future.  For now, we're happy with it. 






On the left is a more traditional scrap wood wall that we've seen in some Japanese restaurants (without the paint).  Simple and clean yet distinctive and textured. 







Here we built faces.  The mouth will be used as bookshelves.  We'll also put something in the noses.  It's hard to make out the faces from the photos.  The facial contours are clearer when you see this wall in person.  
Andrew was against using a shade of green that he hasn't seen in nature.  He didn't want colors that seem artificial because we're avoiding use of artificial ingredients.  In the end, we decided it was okay to add some artificiality to our color scheme, especially since this color feels so refreshing. 

Despite its imperfections, we're happy with this wall.  It's generated much more talk than we expected and most people find it interesting but not offensive, and some love it, even if it doesn't look refined.  We think it'll become an effective marketing piece.

Update: fruits are in the frames.  We just need to add information about them.  Pics coming soon.

Wednesday, May 5, 2010

To Prospective Employees

Those interested in a position with Fresh Fruit Smoothies need to send their contact information to us by Saturday noon, which is when we'll stop advertising for employees.   

If you don't have our e-mail, send your contact information over the blog by including your e-mail on a comment.  Since comments on this blog are moderated, we'll write down your contact info and delete your comment. 

Customer Loyalty Programs

Worth it or not? 

Some considerations:
* We're located next to a gym. 
* Next nearest smoothie shop is 2 miles away. 
* Our products cost 10 percent less than those at Emerald City Smoothie; our margins are probably smaller.  Our products are also unique for the area. 
*  Loyalty program costs

Insights and advice appreciated. 

Tuesday, May 4, 2010

Our Preparation Tactics

We've been preparing to open a food service business for nearly 5 years.  During that time, we learned as much as we could about restaurant operations and we used our home kitchen as a practice space for running a restaurant business.  We invested in a restaurant to gain deeper insight into restaurant operations and budget systems.  We discussed how the lessons learned from our professional work lives could be helpful in operating a restaurant.  (These discussions made our dining experiences much more pleasurable). 

We were always trying to learn about and emulate our favorite restaurants (though not all restaurants we like have been successful).  When we dined at restaurants, we would ask each other about what we thought made the restaurant work, or not work.  We discussed and analyzed the decor, service, food, work-flow processes, leadership, marketing, and overall ambiance of the restaurants we visited.

At home, the first issue we dealt with was wastage.  About 20 percent of what we purchased would end up unused and discarded.  Most restaurants that waste that much don't survive.  We determined the wastage was due to our lack of discipline and poor planning when grocery shopping.  That is, we would purchase what we wanted to eat at the time we were shopping instead of what we needed and could reasonably manage for the week.  For instance, we'd purchase oxtails because we thought we wanted oxtail consomme sometime during the week, but we never considered if we would ever have the time or the motivation to make oxtail consomme.  We didn't consider whether a meal we wanted was possible.  We just wanted it, so we bought the *idea* of it.  We felt entitled to what we wanted.  We thought we deserved it, even though we couldn't make it. 

Our concern with wastage also brought attention to our (lack of) food preparation work-flow process.  We had to figure out a system that would make cooking our ideal meal more efficient and thus, more feasible.  We realized that we could reduce waste by preparing, in one sitting, all the food we purchased.  So we'd set aside a time to prepare food -- chop the garnishes, slice the fruits and vegetables, prepare the marinades and dressing, etc. -- and put them in containers, just as done in restaurants.  We discovered that we could save time and increase motivation to cook-in by doing all our prep work once a week instead of spreading the work over the week.  This made cooking much less daunting after a difficult day at work.  We became more motivated to cook-in instead of eating-out when we didn't have to worry about having to prepare this or that.  Cooking on a daily basis became a simple activity instead of a hassle. Not having to worry about the hassle of cooking reduced our wastage down to 5 percent, still too much for most restaurants to be successful.

So we redefined our ideal home-cooked meals.  We began to read food magazines as pornography, offering perfect meals in perfect settings, prepared by perfect chefs.  We decided that while pornography may offer a model of life, we can only use it as inspiration or fantasy and not as a practical way to meet our nutritional needs.  And if we want to experience food pornography, we'll just go to a fancy restaurant that offers food that we, the flawed, can never emulate. At home, we'd make do with our imperfections.  Our goal became to make meals that fulfill our dietary requirements instead of satisfying our desire for the impossible.  We were surprised to find that this approach made our meals more diverse and better tasting.  Thinking of food magazines as pornography helped reduce our wastage down to 2 percent because we stopped trying to be perfect and started to have fun with cooking. 

We also budgeted as restaurants with seasonal menus would.  Instead of purchasing groceries off a list, we would set an absolute amount of what we could spend on food.  This approach forced us to consider ingredients unfamiliar to us when planning and preparing our meals.  We began think in terms of maximizing nutrition per dollar. 

And we continue to work-out.  Now that we have a health centered smoothie shop, we don't just work-out to look good and to increase our productivity, but also to advertise to customers that what we sell -- not just our smoothies but also our approach to healthy living -- works.

Monday, May 3, 2010

Advice Needed - Using Barcodes

Someone recently mentioned that many gym users don't carry cash or credit card with them when they use the gym.  He's probably right and we're concerned about this issue.  We want to make our products as convenient as possible for our customers. 

He suggested we add barcodes to the gym cards.  That's the most convenient way for gym users who don't carry cash or credit card to purchase our products.  Customers don't have to deal with the hassle of carrying an extra card and risk losing it at the gym.  They can purchase say, 10 smoothies, and each scan of the barcode will ring up a purchase. 

Does anyone know how we can best make this work? 

We won't have a Point of Sales system for a few months.  Our cash register, however, does have a built-in scanner.  We think that an effective barcode system will significantly impact our profitability. 

Tuesday, April 27, 2010

For Prospective Employees

A few comments on the questions:

*  Look up terms you're unfamiliar with or unsure of.  Google them.   

*  Don't think too hard.  Simplify each question, make it relate to your own life.  Everyone has a trade deficit with some business.  Everyone has wondered if they're getting a good or bad deal.  Some of these questions merely ask about your mundane activities.  Don't let the questions overwhelm you. 

*  You don't have to find the receipt of your last grocery bill and search through your fridge and internet to find the nutritional quantity of the items purchased.  Just pick up 5 items from your pantry or fridge and do the math.  Again, don't let the questions overwhelm you.  We're not trying to pry into your life.  We're not judging you based on what you eat. We're just letting you know that our employees will at some point be expected to build a menu. 

*  Be yourself. Be candid. 

* Ask yourself if you would find answering these questions a chore or stimulating.  Would you answer these questions for the fun of it?

Sunday, April 25, 2010

Practical Nutrition

We once discussed weight-loss efforts with someone who was trying to lose over 100 lbs and had lost 14 pounds since joining a gym and hiring a trainer.  She was working-out two hours a day and was doing her best to follow her trainer's advice on nutrition.  But she seemed distraught over her trainer's nutrition recommendations.  She was willing to change her eating habits.  However, she was concerned about the cost of following the diet her trainer proposed.  She was already spending money on gym membership and a trainer and wasn't sure if she could afford to put more time and money into eating "proper" nutrition.   

Her trainer asked her to follow a diet that included a cup of strawberries ($4/lb) and a cup of blueberries ($8/lb) each day. We thought, why eat fruits like strawberries and blueberries in March, when they're expensive?  After all, there's a variety of produce available during March that provide, at a much lower cost, most of the same nutrition in strawberries and blueberries. 

This woman had the will-power to lose weight and she wasn't a picky eater.  She was willing to spend money on a gym membership and training sessions and went out of her way to find time to work-out.  She was willing to follow a regimented weight-loss diet that she was unfamiliar with. But her trainer made proper weight-loss nutrition an exorbitant cost for her. 

She soon stopped going to the gym. We're not sure if she stopped her weight-loss regimen.  If she did end her regimen, we wonder if the cost associated with following her trainer's nutritional recommendations had anything to do with her decision.    

Regardless of what really happened and the final outcome, this story can be used to illustrate one of the problems facing nutrition science.  Nutrition science, filtered through media outlets (ie magazines), tells us what we should eat to be healthy.  But this information isn't localized or personalized to meet individual needs.  Nutrition science findings often aren't disseminated in a way that takes into consideration individual circumstances.  Life-style magazines just tell  readers what they're supposed to eat to lose weight and be healthy. But some people work 12 hours a day and don't have time to prepare nutritionally dense produce.  Others can't afford to purchase fashionable fruits and vegetables (of controversial value) like organic acai berries.  Most people don't have the time and/or money to exactly follow nutrition science advice.

Nutrition science isn't useless.  It just needs to be disseminated in a way that makes sense to individuals.  That requires getting people to understand nutrition concepts instead of thinking of nutrition science findings as directives.  Most people, because of time and/or economic constraints, can't *follow* nutrition science directives.  It may be more effective to get people to *understand* nutrition concepts so they can make nutritional science information relevant and practical to their lives.

Just as not everyone can afford to drive the safest car available, not everyone has the time and income to eat the healthiest food.  But we believe many people can have the option to drive safer cars and to eat healthier foods.  Our goal is to improve lives, and not to make people live the ideal life.

Saturday, April 24, 2010

Price-Point

We'll start with one size -- 24 oz -- and aim to price all smoothies at $4.09, $4.50 with tax.  This keeps operations simple and reduces labor costs.  Fewer coins to deal with means the customer-line moves faster, as we don't have to worry about not having enough pennies, nickels, and dimes, and it'll encourage us to develop drinks that offer the most nutritional value per dollar.  We'll offer different sized drinks if we think it'll increase demand enough to justify the additional labor costs to do so.  

(We've yet to decide on the price of a scoop of Matrix whey protein).

We'll be sure to keep our prices lower than those of our main competitors, Emerald City Smoothie and Jamba Juice.  To maintain our prices, we have to develop a work-flow process that reduces our labor costs and wastage.  We want to keep prices low by figuring out more efficient methods to produce our products, and not by reducing quality. 


To maximize sales without sacrificing profit, we want to keep prices at a point where enough people think it's more cost-effective to get their servings of fruit/vegetables from us than on their own.  One can make one of our smoothies for $2, assuming they shop at places like QFC or Safeway, have a $500 dollar blender, and are willing to learn how to make one.  So we have to figure out the convenience cost to customers.  That is, how much is the average health conscious customer willing to pay to let someone else produce what they need/want?  We need to keep the cost at a point where enough customers will think that it's better to purchase their smoothies from us than to deal with the hassle and risk involved in purchasing and preparing produce (cleaning, cutting, waste) to make a nutritionally comparable smoothie made by Fresh Fruit Smoothies.   

Our prices are determined not just by the quality of our smoothies, but also by how well we can control the cost to make them.

Friday, April 23, 2010

Build-out

Some photos of our build-out work.


The bar came from a vacant store in the plaza.  The cabinets we received for free from Habitat for Humanity store in Sodo.  We still have to purchase a countertop.


Beginnings of our scrap wood wall.  This design is inspired by local carpenter-artists Luke and Jake who were the first to design such a wall for a restaurant in Seattle (Frank's Oyster House and Champagne Parlor, which we highly recommend for its food, service, and decor).  Our design and construction is nowhere as polished as theirs.  On the left you'll see the beginnings of a face made of scrap wood.  The mouth protrudes enough to be used as a bookcase.  We'll either stain or paint each piece of wood. 

This probably isn't the best time for us to be spending as much time as we have with restaurant design work.  A smoothie shop isn't as dependent on design as are some restaurants.  But now that we've started it, we have to finish it before opening.  This design project may not be the best use of our time, as we have many other issues to deal with. 

Hopefully, the design, which is unique in our area (not so much in politically Green parts of Seattle) will prove attractive enough for people to spend time in our lounge area and use it as a public gathering place.  None of the smoothie chains offer comfortable sitting areas and most smoothie customers aren't accustomed to hanging out in a smoothie shop. 

Our design could generate some controversy.  We'll explain more in another post.  

Luke and Jake also designed How to Cook a Wolf, Tavalota, and are currently working on Ray's Boathouse. 





This is a refurbished 1912 couch we purchased from an estate sale.  It's proving problematic, as a few gym members tell us that they don't want to see it get ruined.  Someone insisted that we purchase vinyl covering for it because "it would be a crime to ruin it." 

The concerns are legitimate and we probably should've gone with a darker colored couch that doesn't inspire as much sentimentality.  But this was the best we've found and its style and structure fits well with the store decor.  It's comfortable to sit-on for activities such as discussion and reading, but not so much so that people will fall asleep on it.


Our granite tile tables, made and provided by I don't remember the place we got it from.  The legs we received for free from some architect getting rid of stuff.  We spent $80 and an hour of our labor for four of these tables.

Help Wanted - Job Description

We don't have a detailed job description.  We're leaving it up to prospective employees to figure out how they can leverage their skills and experiences to add value to Fresh Fruit Smoothies customers and to impact how people think about smoothies, health, and nutrition.

 

Menu Explained - Smoothies as Meals

We considered two types of customers -- ones who drink them as a meal and those who buy them as an indulgence, like they would a frappucino or a candy-bar.  (Many of us are somewhere in between and use smoothies as occasional meal supplements or snacks). The former tend to care less about taste and more about the nutritional qualities and convenience of a smoothie.  The latter want instant gratification.  Our aim is to attract both types of customers by meeting the needs of those who are primarily concerned about the health benefits of a smoothie and introducing smoothies as satisfying meals to those who don't consider them as such.

Up until recently, we used smoothies as meal supplements (morning juice, evening desert), not as meals in themselves.  A fruit smoothie never seemed to keep us satiated for more than an hour or two, especially after engaging in strenuous activity (which boosts metabolism).  While the strong-willed ignore their hunger pangs, others, like us, don't like to feel hungry.  Based on research, we began to include nutrition dense vegetables such as sweet potato, yam, and azuki beans in our smoothies.  Compared to fruits, these vegetables provide more fiber and protein and are (thus?) processed more slowly in the stomach.  We feel full for 3-4 hours after drinking a potato or bean smoothie.  Drinking a sweet potato/yam/bean smoothie feels like having a meal.

The problem with potato/yam/beam smoothies is that they contain more calories than that of our fruit smoothies.  But because they're more satisfying, they can ultimately reduce daily caloric intake.  We assume people snack more when they're hungry than when they're not.  We try to develop a menu that meets different nutritional, psychological, and physical needs. 

We expect some to be reluctant to try potato and bean based smoothies.  We hope some free samples and effective salesmanship will change their minds.

Our favored pre-workout drink is the Jalapeno-Yam/Sweet Potato Smoothie.  The jalapeno functions as a caffeine alternative and boosts metabolism; the yam/sweet potato keeps our blood sugar levels steady for up to 4 hours.  There's enough carbs and protein to support a rigorous workout.  The sweetness of the yam/sweet potato makes the jalapeno spice more palatable, less shocking.

We'll continue to explain the menu and include nutritional data in another post.

Wednesday, April 21, 2010

Job Titles

We're placing an order for business cards.  Now that we have our own company, we can choose our own job title.   It's like getting a promotion. We're moving straight to the top.  Take that, boss!    

As expected, we immediately encountered problems.  We both want the same title -- Court Jester.  Both insist on first claim.

We're going to settle this with a boxing match.  Not the Chinese way of handling the disagreement, as we're too cheap to throw dishes at each other.  Not the American way of handling it either, as we don't have the money to sue each other.  At any rate, because of Andrew's 50 lb weight advantage, he'll have his right hand (he's right-handed) tied behind his back.  Someone is going to have their ass kicked, someone will be The Court Jester.

Chinook, our dog and CEO, will officiate.  Stay tuned.

Menu Explained - Cost Control and Nutritional Density

Using fresh fruit instead of powder and syrups increases our risk and labor-costs.  We have to be concerned about the perishability and price fluctuations of produce and the labor-cost of procuring produce on a daily basis.  We have to minimize waste. 

To reduce risk, we've decided on a menu that changes seasonally and primarily relies on tropical fruits.  Prices of fruits grown in temperate climates are volatile, while those of fruits grown in tropical climates tend to be stable.  Temperate climates are unpredictable; tropical climates are constant. 

So we'll probably have bananas and mangos year-round.  (And we'll probably be learning alot about the political and economic infrastructure and climate of places like Panama and Ecuador).  Mangos are nutritionally dense and keep well for many days in cool storage.  Bananas don't keep as well but at least they're easier to prepare.  We may add other tropical fruits such as papayas once we know more about them. 

Berries don't keep well and are too expensive for us to use for most of the year.  We'll use them when we think their prices are reasonable for our operation but we have to very careful to not waste them.  We'll do our best to use lemons and limes throughout the year because their distinctive taste (high acidity) is too important to not have. 

Vegetables seem hardier, less impacted by volatile weather.  Yams, sweet potatoes, and beans keep well and will likely be available year-round.  We expect the price of soy to remain stable throughout the year.  Expect smoothies that include kale and beets. 

Our other consideration is the nutritional density of our products.  Fitness fanatics are obsessive about protein to carb to calorie ratio.  Many want to get as much protein out of each calorie as possible.  We're not just competing on taste and cost of a smoothie, we have to develop products that provide the right combination of nutritional value (with emphasis on protein) at a lower cost per dollar than that of our competitors.  We're hoping that customers will accept azuki beans , which offer more protein (and fiber) per dollar than does protein powder.  We'll offer protein powder, but at an additional cost. 

We'll continue to explain our menu in another post.

Tuesday, April 20, 2010

Tentative Menu

At least 4 servings of fresh fruit/vegetables in most smoothies.  

Mango Smoothie (mango, banana, lemon, orange juice)
Popeye's Secret (spinach, mango, banana, lemon, olive oil, vanilla soy)
Olive Oyl (olive oil, avocado, banana, carrot juice)
The Iditarod (vanilla ice cream, soy milk, mango)
Bacon Milkshake (vanilla ice cream, soy milk, bacon)
Strawberry Smoothie (strawberry, banana, lemon, soy milk)
Strawberry Mango Smoothie (strawberry, mango, banana, soy milk)
Jalapeno-Yam Smoothie (Jalapeno, yam, carrot juice, soy milk)
Red Bean Mango Smoothie (Azuki beans, mango, banana, soy milk)
The Paris Hilton (artificial sweetener, corn syrup, mocha)

We'll explain the menu in another post.

Store Name

It took us awhile to think of a store name.  The first name we settled on was "Happy Beans Smoothie (HBS)."

We chose HBS because we want to introduce azuki beans as a cost-effective alternative to protein powder.  We also wanted a distinctive and catchy name that intuitively generates fun web and storefront designs.  Imagine smiling beans jumping around!

While we liked the name HBS, we were never comfortable with it.  Though we may think HBS expresses our childlike enthusiasm for smoothies, others may interpret us as immature, not to be taken seriously.  To us, the idea of bean based smoothies is interesting, but others may find it weird and gross.  We see happy beans jumping around.  Others may see turds making funny faces.

We then considered "Healthy Bean Smoothies."  More serious sounding but it still assumes that people will be intrigued by the idea of bean based smoothies.  And some people equate "healthy" with nasty. Too problematic.

In the end, we chose a pedestrian and straight-forward name -- "Fresh Fruit Smoothies (FFS)"  It's neither sexy nor mysterious (not that HBS is either), but it concisely describes our shop as a place that serves smoothies made with fresh fruit and not with artificial flavoring. We think it's a name that most people will understand. 

The name FFS also means there's less pressure to make bean based smoothies sell.  In our moment of self-absorption and grandiosity, we imagined ourselves revolutionizing the smoothie industry and the American culinary culture by force-feeding Americans blended azuki beans until they they say they like it.  We had to remind ourselves that our goal, at best, is to introduce new ingredients and to help people cost-effectively fulfill their needs.  We can't expect people to like our products.  We can only try our best to make products that people will enjoy and purchase.

Sunday, April 18, 2010

Help Wanted -- Interview Questions

Since we plan to keep the store open from 6am-10pm M-F, and 8am-?pm over the weekends, we'll need employees.  We need time during the day to purchase produce and to track inventory.  And we need to walk our dog (we're interested in hiring a dog-walker). 

We've compiled a list of interview questions for prospective employees:
* Use "discriminating" in a sentence. Use "picky" in a sentence. 

* "Economics isn't a zero-sum game, where there's a loser for every winner."  Provide an example of this dictum.  If you don't agree with it, explain why.

* Do you carry a trade deficit with a business?  Are you concerned about it? 

* Sell this dish to a health conscious customer.



* A restaurant receives a party of 20.  Each party member decides to pay with a credit card.  How does this impact restaurant operations (ie customer service) and labor costs?  (Answer this question in fewer than 5 sentences). 

* From your last grocery bill, estimate the amount of protein, calories, and carbs you purchased per dollar.



These questions have been posted on our storefront window.

We're reluctant to explain how we came up with these questions until we stop using them.

All but one of the questions above -- "sell this dish..." (used by some restaurants hiring servers) -- are original and thus, likely not to have ever been addressed online.

Marketing

We don't plan to spend much funds on marketing. We'll put up signage over the storefront -- as required by the landlady -- and on the plaza-sign post, build a basic website, and create a Facebook page. We won't bother with print ads or coupons.  We don't expect any amount of marketing to make our shop a destination spot.  We're assuming most people won't travel long distances for a smoothie.    

As mentioned before, we envision our smoothie shop is a parasitic business that will primarily draw its customers from 24 Hour Fitness users. Our assumption is that 24 Hour Fitness provides us with a self-selecting customer base that doesn't need to be convinced to purchase nutritious smoothies.  They just need to be served well and provided with smoothies that meet their nutritional and taste expectations.

Of course, we'd like to attract those who aren't gym members and we'll eventually work toward diversifying our customer base. But we're concerned that focusing on satisfying too many types of customers may dilute our brand and negatively impact those interested in health and nutrition. For instance, we could offer bubble tea (not healthy) but we haven't figured out a way to offer such drinks without impacting our reputation as a health food shop.  

Another consideration is our lack of experience with such an operation.  We don't know how to minimize labor costs and to control risk.  We need time to figure out how to cost-efficiently best serve our core customers .  We initially can't handle too many different kinds of customers.  And ultimately, we want to attract more customers not by catering to those who aren't concerned about the nutritional qualities of a smoothie, but by making more people aware of how a smoothie that contains 4 servings of fresh fruit can positively impact the quality of their lives while reducing their cost of living.



Saturday, April 17, 2010

First Ad

Our first advertisement.  




Tutti Frutti, On Rutti
Tutti Frutti, On Rutti
Tutti Frutti, On Rutti
Tutti Frutti, On Rutti
Tutti Frutti, On Rutti

A-bop-bop-a-loom-op a-lop-bop-boom

   --- Little Richard

We wonder if trying to get a jingle in the heads of those born prior to 1960 will get us sued for some infringement.  Or worse, the right people won't and the wrong people will understand the sexual connotations of the lyrics (we're beginning to realize that those of our parents generation were (are) very naughty). Chances are, most people will read it wonder what it's about.  We're hoping that mystery builds anticipation. 

"Tutti Frutti, on Rutti" roughly means "fruits combined, coming soon"  (or does it?  anyone speak Italian?)

Thursday, April 15, 2010

Permit Process

In King County WA, a smoothie shop that uses fresh fruit instead of powder is considered a food establishment.  To operate legally, we have to apply for a food service permit (county).  We also have to apply for a plumbing permit with the city.  Since we're not tearing down or adding walls, we don't need to apply for a builders permit. 

It costs $728 to *submit* the food service application.  Approval of the application *may* cost more.  An application that isn't acceptable will require a payment of $128/hour for additional review.  With that in mind, we decided to hire an architect -- ModusVStudio -- experienced with and knowledgeable about commercial permit processes and cost-efficient interior design.  Since we're working with a tight budget, we don't have the option to fuck-up the food service application and to make costly design mistakes. 

The food service application involves providing "professional quality" as-built drawings, equipment floor plan, finish-work schedule, menu and work-flow process plan, and on and on and on.  The architect assessed the utilities infrastructure of our shop and discussed with us possible designs to maximize cost-efficiency of daily operations, short-term and long-term.  He helped us locate sinks, prep tables, and service area based on the available plumbing infrastructure and developed a general work-flow process that will keep labor costs to a minimum. 

Once we settled on a design, the architect drew the plans and sent them to us 2 days after our on-site meeting.  We reviewed them, discussed other design possibilities, architect made appropriate revisions, and we submitted the plan to the county.  Start to finish in 4 days.  If we had done it on our own, it would've taken us at least 2 more weeks and increased significantly the chances of our application being rejected.  It costs $90 per day to not have our shop in operation.  We need to take advantage of the free rent days as best we can.  The architect was worth it.

In retrospect, we probably should've had a contractor or architect experienced with commercial code requirements to review the space before we signed the lease.  They can help assess build-out costs of a space.  Luckily for us, the utilities infrastructure of the space turned out to be adequate, though not ideal, for our uses.  While the current plumbing infrastructure isn't up to code to handle an ice-maker and prep-sink in the front service area (floor drain sink and reverse drain required), our architect and plumber figured out ways to make do with what we have in a way that fits our budget.

Once we have the food service permit, the inspector will investigate the site to ensure that we have sufficient equipment (esp. refrigeration) for the operation.  She'll probably use our work-flow process plan to guide her inspection.  

The plumbing permit is straightforward and is available over the counter.  We just need to fill out an application and list the fixtures we plan to install.  A commercial plumber is required to install the fixtures, even if it's just a wash-sink.

We hope to have our plan approved within 2 weeks of this posting.  Again, each day we're not open costs us $90 in overhead.  

For those considering opening a commercial operation, our architect's website is: www.modusvarchitects.com.  ModusVStudio also has a website devoted to commercial permit processing services: www.ezbuildingpermit.com

Wednesday, April 14, 2010

Location and Restrictions

The store is in a plaza located just off I5 and on the King/Snohomish county border.  We don't have car and foot traffic numbers.  Subjectively, the area feels very busy.  

The storefront below.

It's tucked in a corner -- low visibility -- but it's next to a 24 Hour Fitness gym that receives an average of 1000 sign-ins per day.  Notable neighbors include a Thriftway grocery store, Starbucks, and Blockbuster.  The plaza we're located in is just off I5

The main advantage of the location is that it's located next to a busy gym.  We assume that gym goers are much more likely than the average person to be interested in a smoothie, either as a health supplement or as a post-workout reward.  For instance, muscle-builders need pre and post workout nutrition to maximize training effect.  Those who go to the gym for social reasons may consider a smoothie a guilt-free reward for their hard work.

The interior is 1563 sf and divided into 2 sections, a back kitchen and front service area.  It's probably too large for our needs, so we're going to maximize use of the space by creating a lounge area that's a composite of  those at Starbucks and bubble tea shops.  If nobody wants to hang out in our shop, then we'll consider subleasing a part of the store.      

The front area below. 



There are drawbacks to being located in a "busy" location that includes international chains like Starbucks and a regional grocery store like Thriftway.  Chains will often insist on including restrictions on what their neighbors can sell.  Landlords are likely to oblige because chains add prestige and stability to a commercial plaza.

Here are a few restrictions on what we can do:

*Can't sell coffee or tea based products, unless it's offered in a restaurant (Starbucks)
* Can't offer deli service (Thriftway)
* Can't offer restaurant service (Thriftway and Blockbuster)
* Can't sell health supplements (Rite Aid)
* Can't sell x,y and z food items.  

The list goes on.  However, we can sell baked goods (the one concession the agent insisted on receiving from the grocery store) so anyone who wants to start a bagel/bread shop, let us know.  We'll sublease part of the space to you if you can make good baguettes. 

We'll discuss more about these restrictions in a post about the menu.

Tuesday, April 13, 2010

Negotiating the Lease

The space we've leased has been unoccupied since December 2007, just after the US housing bust and 6 months before the Great Recession hit Seattle.  It's a 1563 sf space divided into a back kitchen area and a front service area and is located in a plaza just off I5, on the Snohomish/King county border.  There are 20 stores in the plaza, including a full-service grocery, 24 Hour Fitness, Blockbuster, Starbucks, Massage Envy, and a hair salon.  

It took nearly 3 months to negotiate the lease.  We began with a review of the space and mining for traffic patterns.  We checked to ensure that the location of electrical outlets and plumbing were sufficient for a smoothie operation.  Insufficient utility infrastructure can significantly increase start-up costs.  We probably should've had a plumber or architect look over the space.  At any rate, the space was adequate, though not ideal, for a smoothie operation.  The back kitchen area had the plumbing we needed for food-prep work -- proper drainage for 3 compartment-sink and wash-sink, and a floor drain for an ice-maker.  The front service area was more problematic, as it only had plumbing for a wash-sink, meaning prep-work would have to be done in the back kitchen (at least during hours when health inspectors are working).  This could increase labor costs because the person handling the service area can't do prep work.

We only considered the traffic coming from 24 Hour Fitness, and not car and plaza traffic, because we assumed that 24 Hour Fitness customers are more predictable than the average person who drives by the plaza -- those who work-out regularly take nutrition more seriously and are more likely to consider smoothies/protein shakes as necessities, meals.  Those not interested in nutrition tend to treat smoothies as luxuries, like candy, and therefore aren't reliable customers.  Corporate 24 Hour Fitness won't release their traffic information, but the manager of the gym told us that they average 1000 sign-ins per day, which matched our qualitative estimate of its traffic patterns.  We'll discuss more about traffic patterns in another post.    

Finding the infrastructure and traffic pattern acceptable for our needs, we sent the leasing agent a letter of intent (LOI) that describes what we intend to do with the space.  After the landlord agreed that our intention met the plaza' use guidelines, we received a preliminary lease.

It took us a week to review the lease.  We discussed lease negotiation tactics with someone in the commercial real estate business and carefully considered how each requirement impacts the business.  Some of our requests include:

* Option to break a lease.  Landlord asked for a 5 year lease.  We agreed but asked for an option to break the lease if the 24 Hour Fitness gym next door doesn't renew their lease in 2013.  We consider the smoothie shop a parasitic business, one that doesn't draw people to the plaza and instead leverages businesses existing in the plaza.  We're not sure if the smoothie shop can survive without the gym.

* Extending store hours.  They asked for a standard 8am-6pm.  We asked to be allowed to stay open as early as 5am and as late as midnight (we need to work around gym crowd).

* Time for build-out (free rent).  Landladies typically give up to 3 months free for build-out and we were offered 2.  We likely won't need more than 2 months to begin operations, as the space doesn't require much renovation.  But we're novices at operating smoothie shops and it'll take us at least a month to figure out work-flow processes and customer needs.  And we can't hire workers until we've figured out work-flow processes.  So we asked the landlord to give us 4 months of free rent so that we'll have enough time to work out the kinks and become profitable.  Summary of our argument:  we don't have much start-up funds and thus, we have nothing to protect us from a disaster (like the power outage in 2006 that kept the plaza closed for a week); we don't have money for signage and free rent will give us the funds to put a sign that costs 5k; we need 2 months of operation to understand customer needs and business operation processes.  In other words, we need time to not worry about profits and paying rent, and to instead figure out how to run the operation.

We tried our best to frame our response in terms of how our version of the lease agreement benefits the landlady.  The agent told us that the landlord wants shops that quickly become profitable and stable. Using this information, we responded that 4 months of free rent would increase the chances of our shop being stable and fully operational within 4 months.  The free rent gives us the flexibility to adapt to customer needs at low risk and to complete build-out in a shorter time-frame.  The landlord gave us 4 months of free rent and we promised that we'll put up signage within 60 days of opening.

If we had more credibility, we probably could've gotten the landlord to pay for tenant improvements or an additional month of rent because of the weak economy.  But we don't have credibility. The landlord doesn't know if we can operate a smoothie shop.  If we were Starbucks, the landlady would probably go out of her way to ensure we get the space.

In the end, we got what we think we need to make this shop work.  We hope to begin operations a month into the lease.  That'll give us 3 months of business operations without having to worry about rent.  We'll use the money saved to install signage, add additional equipment and furnishings, and perhaps take a few risks.  We're confident that the store will look complete within 4 months of the beginning of the lease.